SAT rejects Sebi's application to review Triveni order
Mar 06 2014 , Mumbai
On October 10, 2013, the tribunal had upheld Sebi's order against Triveni Management Consultancy Services but had reduced the penalty imposed on the entity to Rs 50,000 from Rs 1.50 lakh on the ground that Triveni's former CEO Manish Mathur had also been penalised by Sebi with Rs 10 lakh.
In its review application, Sebi had contended that the Rs 10 lakh penalty imposed on Mathur was related to his fraudulent dealings in the scrip of Asian Star Company and the same was "not the subject matter" of appeal filed by Triveni with SAT.
In an order dated March 5 on the review application, SAT said that it had reduced the penalty on Triveni "knowing fully well that the said penalty (Rs 10 lakh) was imposed upon Manish Mathur in a totally different proceedings".
"Therefore, argument of Sebi that since penalty of Rs 10 lakh has been imposed upon Manish Mathur in a totally different proceedings, our order dated October 10, 2013 needs to be reviewed cannot be sustained," it added.
The Securities and Exchange Board of India (Sebi) had slapped Rs 1.50 lakh penalty on Triveni after noticing certain deficiencies in the functioning of the company with respect to Know Your Customers forms and agreements, prevention of money laundering compliances, among others.
However, SAT in its order in October, last year, had noted that the "deficiencies" noticed by Sebi were "procedural deficiencies and do not involve any fraudulent action on the part of the Triveni".
Accordingly, SAT had upheld the decision of Sebi against Triveni but had reduced the quantum of penalty imposed on the entity.